General Motors Company (NYSE: GM ) stock traded higher by 1.4 percent on Tuesday morning after the company reported record fourth-quarter earnings.

After factoring in a one-time $7.3 billion non-cash charge from tax reform, GM reported adjusted, diluted fourth-quarter earnings per share of $1.65 on revenue of $37.7 billion. Both numbers topped Wall Street consensus estimates of $1.38 and $36.5 billion, respectively.

GM reported full-year 2017 adjusted, diluted EPS of $6.62 on revenue of $145.6 billion. EPS was up 8.2 percent from 2017 to a new record high, while revenue dropped 2.4 percent compared to 2016. Non-GAAP margins were up 0.2 percent to 8.8 percent, but North American margins came in at 10.7 percent, their third straight year in the double digits.

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General Motors also said it returned $6.7 billion in capital to shareholders in 2017 via dividends and buybacks.

"Improvements in all operating segments and an intense focus on cost reductions generated a record quarter and another record year," CFO Chuck Stephens says in a statement.

Global vehicles sales in 2017 were 8.9 million, up 0.6 percent from 2016. GM also reported a record 4 million vehicle sales in China on the year. GM said it plans to launch 15 additional new or refreshed vehicle models in China in 2018.

In 2017, GM announced plans to launch at least 20 new all-electric vehicle models by 2023 and has applied for federal approval to begin testing new autonomous vehicles with no steering wheel, pedals or other driver controls.

In January, GM said it plans to spend $8 billion in 2018, $1 billion of which will go to autonomous vehicle development. However, GM said it expects 2018 EPS in the $6.00 to $6.50 range, suggesting the heavy expenses will have a limited impact on profitability.

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So far, the heavy spending seems to be paying off. Last month, Navigant Research said GM and Alphabet ( GOOG , GOOGL ) subsidiary Waymo were the two clear leaders in the global autonomous vehicle technology race.

Bank of America analyst John Murphy says investors should appreciate the combination of value and potential growth catalysts that GM offers.

"The accelerating focus on future-proofing the business with the development of the necessary components of the future of mobility services, including an autonomous EV fleet, car sharing and connectivity may provide upside," Murphy says.

Bank of America has a "buy" rating and $57 price target for GM stock.

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